Nkangala DM Final Master Agri-Park Business Plan
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Nkangala Agri - Park FINAL MASTER BUSINESS PLAN APRIL 2016 | This Report has been read and approved by: _____________________________ _________________________ Chief Director: PSSC Head Date Ms. Z Sihlangu _____________________________ _________________________ REID Director: Mr. MC Madolo Date ____________________________ _________________________ RID Director: Ms. A Mametja Date _____________________________ _________________________ Nkangala District: Rural Development & Agricultural Officer Date Mr. HM Rantho 1 URBAN-ECON DEVELOPMENT ECONOMISTS Suite 203 Metropolitan House 15 Russell Street Mbombela 1200 Tel: 013 752 4932 E-mail: [email protected] Website: www.urban-econ.com Manstrat Agricultural Intelligence Solutions Tel: 012 460 2499 Email: [email protected] Website: www.manstrat.co.za 2 Nkangala DM Master Agri-Park Business Plan Road Map Chapter 1: Introduction Chapter 2: Agri-Park Model Summary: An introduction to the master business plan report is provided in this Summary: This chapter provides an overall overview to the Agri-Park model chapter through: the project background, goals and objectives, the project’s which was developed by the DRDLR. purpose and a demonstration of the project methodology. Key words: Agri-Park model, small-scale/smallholder farmers, FPSU, AH, Key words: concept, smallholder/small-scale farmer, FPSU, AH, RUMC, capital RUMC, production, facilities, information, large-scale/ commercial farmers expenditure Must read if the reader: Must read if the reader: Is not familiar with the Agri-Park’s concept. Does not have a background on the Master Agri-Park Business Plan Seeks to understand the 3 units of the Agri-Park model. Project. Does not know what the goals and objectives of the project are. Is interested in the project process. Chapter 5: Main Role Players Chapter 4: Location Context Chapter 3: Policy Review Summary: A list of role-players that are Summary: This chapter provides an overview of the Summary: The important policies that affect the important for the Nkangala Agri-Park Nkangala DM and its features that are important for Nkangala DM Agri-Park are reviewed in this Development are listed in this chapter, along the development of the Agri-Park. chapter and the alignment of the Agri-Park to with potential duties that they may take on. the policy is identified. Key words: Nkangala DM, local municipalities, Key words: government, private, location, economic infrastructure, economic activities Key words: policies, strategies, national, associations, organisations, financial provincial, local, implications, alignment institutions, companies, service providers, Must read if the reader: roles Does not know the location of the Nkangala DM Must read if the reader: Does not know the status of important locational Is not familiar with policies that are Must read if the reader: features of the Nkangala DM. influential to the Nkangala Agri-Parks Is not familiar with the role-players that Does not know the Agri-Hub location and its Programme. are expected be involved with the selection. Is not familiar with the policy implications Nkangala Agri-Park. for the Agri-Park. Is interested in the potential duties to be taken up by the role players Chapter 7: Agricultural Industry Analysis Chapter 8. 9 & 10: Commodity Summary: In this chapter, an analysis of the District’s agricultural features is provided, as well important Analysis factors that are influential to agricultural Chapter 6: Economic and Socio- Summary: The three commodities that have development. The three agricultural commodities to been selected to be produced in the initial Economic Analysis be produced in the district’s Agri-Park are identified. phase of the Agri-Park programme are Summary: This chapter analyses the Key words: agricultural activities, GVA, commodities, individually analysed according to: The market; economic and socio-economic status quo climate, resources, projects, selection criteria, Value chain; Agro-Processing opportunities; of the Nkangala DM through statistics of the prioritisation, top three commodities Stakeholders and service providers; following indicators: demographics, Technology; Socio-economic contributions economic profile, unemployment status, Must read if the reader needs to know: and influences; Emerging/ Potential skills level, income and poverty The current agricultural status of the District. entrepreneurs; and SWOT analysis The status of resources and climate features Must read if the reader: affecting agriculture in the Nkangala DM. Commodities: Beef, Maize and Vegetables Does not know the socio-economic The process of selection used for the three status quo of the Nkangala DM. commodities. Must read if the reader: Does not have knowledge of the effect The three selected commodities. Is interested in the commodities’ market of the socio-economic status quo on trends. the Nkangala Agri-Park development. Is interested commodities’ business enabling features. Needs to know the value chain relations. Chapter 12: Agri-Park Chapter 13: Implementation Guidelines Organisational Structure Summary: The implementation guidelines for the Chapter 11: Agri-Park Concept development of the Agri-Park are discussed. Summary: The organisational structure for the Development Agri-Park is demonstrated schematically and Key words: implementations, guidelines, process explored. Summary: The concepts for the Nkangala Agri-Park recommendations, programmes, action plan, are developed, based on the Agri Park Model, and timeframes Key words: structures, organisational, advisory, a basic capital expenditure is provided. approval, implementation, monitoring Must read if the reader needs to know: Key words: concept, smallholder/small-scale farmer, The implementation of the Nkangala Agri- Must read if the reader: FPSU, AH, RUMC, capital expenditure Park. Does not know how the Agri-Park is How government programmes are aligned organised. Must read if the reader needs to know: with the Agri-Park. What the concept of the Nkangala Agri-Park is. The recommended action plan and How the 3 units in the Agri-Park model will timeframes. function. 3 EXECUTIVE SUMMARY The Agri-Park concept together with the introduction of an Agri-Park per district municipality is a relatively new concept in South Africa. This document represents the master business plan which will serve as a guiding document in the implementation of the Agri-Park model that was developed by the Department of Rural Development and Land Reform (DRDLR). Section 1 – Introduction: provides the background information on the Agri-Park concept. It also provides the goals and objectives of the project. Lastly, the section presents the purpose of the master business plan and outlines the various steps that are undertaken in completing the master business plan i.e. the project methodology. Section 2 – Agri-Park Model: provides an insight into the Agri-Park model. The section provides the definition of the Agri-Park and describes the three basic units within the Agri-Park. All the basic functions together with how the basic units will interact are also described in this section. Section 3 – Policy Review: in order to achieve its set objectives, the Agri-Park Model seeks to align with some of the key government strategies set out in existing policy frameworks. For this reason, the section three (3) of this document provides an overview of the national, provincial and local policies that will guide the development of the Agri-Park Project. The policy review section provides a background on the relevant policies; identifies key focus areas and targets; and discusses the implications of the policies for the Nkangala District Municipality (NDM) Agri- Park. Section 4 – Locational Context: in order to establish an Agri-Park in the NDM, it is important to have a good understanding of the strength, weaknesses and the comparative advantages that the district holds. Section 4 therefore describes some of the main features and the major economic infrastructure that are crucial to the development of the Agri-Park in the NDM. The proposed location of the Agri-Hub together with some of the existing infrastructure that can be utilised by the Agri-Park are also described. Section 5 – Main Role-Players per District: section 5 outlines the main role-players that could potentially be involved in the NDM Agri-Park at varying levels of the development process. The role-players are summarised into three categories such as: Government and Public Sector; Private Companies; and Associations and Organisations. Section 6 – Economic and Socio-Economic Analysis: The purpose of this Section is to describe the economy of the Nkangala District Municipality in relation to population and economic growth; job creation; and income and poverty level, as viewed against the economic performance of Mpumalanga and South Africa as a whole. A sectoral analysis is also 4 provided, setting out the structure of the NDM economy with respect to the different economic sectors and their output and employment contributions to the district’s economy. Section 7 – Agricultural Industry Analysis: Part of the objectives of the Agri-Park project is to identify three dominant or most feasible commodities within the district. Hence, this section provides an overview of the main agricultural activities occurring in the district, focusing on the types of commodities or products farmed and produced. Part of the purpose of this section is to provide relevant information regarding the current agricultural